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Arsenal and Chelsea look set to miss out on the signing of Real Madrid striker Karim Benzema this summer as he edges closer to agreeing a new contract with the Spanish giants, according to Fichajes.net.

The French international looked like he could be heading for the Bernabeu exit door before next season after rocking the club with his high contract demands, but an agreement now seems to have been reached between the club and the player’s representatives.

Still, with Real known to be targeting another bid for Liverpool star Luis Suarez, Benzema won’t necessarily be guaranteed a regular starting place in Carlo Ancelotti’s side next season, despite being one of the team’s most important attacking players for much of the 2013/14 season.

The 26-year-old registered an impressive 24 goals and 14 assists in all competitions to help Madrid to glory in the Champions League and Copa del Rey, and his fine form had seen him emerge as a top target for both Arsenal and Chelsea.

The two London sides are known to be in the market for new signings upfront this summer, but may now have to look elsewhere as Benzema looks increasingly likely to be staying put with his current club.